What are the allegations, charges, guilty plea, investor impact, and bankruptcy developments in the U.S. case against former Linqto CEOs William Sarris and Joseph Endoso over an alleged $450 million pre-IPO investment fraud scheme involving more than 13,000 investors, including h

Federal prosecutors allege that Linqto founder William Sarris orchestrated a years-long scheme that caused more than 13,000 customers to invest over $450 million in purported pre-IPO securities at materially inflated, undisclosed prices. These are allegations against Sarris, not findings of guilt; former CEO Joseph Endoso has pleaded guilty and is reportedly cooperating. 13

Alleged scheme and investor impact

• From at least 2020 through 2025, prosecutors say Sarris used Linqto—an online platform offering interests tied to private-company, pre-IPO shares—to mislead customers about the price Linqto paid for securities and the price customers were charged. 12

• The core allegation is that Linqto represented customer prices as reflecting a “market” or current valuation, while concealing its own acquisition cost and imposing markups that in some instances exceeded 200%. 12

• Prosecutors further allege Sarris created artificial scarcity and manipulated how private-company securities were valued or presented to customers, thereby making the offered interests appear more valuable and less available than they really were. 12

• The alleged harm was not simply that investors bought risky private-company investments; it was that they allegedly paid prices distorted by undisclosed markups and false pricing representations. The reported $450 million is the amount prosecutors say was raised from more than 13,000 investors, not necessarily a final judicial calculation of losses or restitution. 13

• The publicly available search results establish that the investments concerned private/pre-IPO company securities, but they do not reliably identify every issuer or portfolio company involved. It would be inappropriate to present a definitive company-by-company list without the underlying indictment or bankruptcy schedules.

Use of customer holdings and revenue targets

• According to the indictment summary, Sarris allegedly used or directed transactions involving customers’ existing investment positions to generate revenue and meet Linqto’s revenue objectives, rather than treating those positions solely as customer-owned investments. 2

• The detailed theory is that the platform’s control over special-purpose investment vehicles and customer interests enabled it to generate fees or trading revenue from customers’ holdings; the prosecution contends those actions were inconsistent with what customers had been told about pricing and ownership. 12

Criminal case and plea

• In September 2026, the U.S. Attorney’s Office for the Southern District of New York announced criminal fraud charges against Sarris in connection with the alleged scheme. 1

• Endoso, who succeeded Sarris as CEO, pleaded guilty in the same matter to participating in the fraud scheme, according to the DOJ announcement. 1

• Reuters reported that Endoso is cooperating with prosecutors. Sarris’s attorney said that Sarris is innocent and intends to contest the charges. 3

• A charge or indictment is not a conviction. Sarris is entitled to the presumption of innocence unless and until guilt is proved in court.

Timeline

• 2020: Prosecutors place the beginning of the alleged fraud at or around this year. 2

• 2020–2025: The alleged conduct continued while Linqto marketed private-company/pre-IPO investment opportunities and, prosecutors say, concealed excessive markups and misstated pricing. 12

• July 8, 2025: Linqto filed for Chapter 11 bankruptcy protection. Contemporary reporting said customers brought litigation immediately afterward, alleging they had been misled about investments promising access to private-company equity. 3

• 2025 bankruptcy process: New management’s review reportedly uncovered potential securities-law violations reaching back to 2020, contributing to regulatory investigations and the restructuring process. 7

• February 2026: The bankruptcy court approved Linqto’s Chapter 11 plan, according to a report by counsel involved in the restructuring. The process was designed to preserve or recover value for affected stakeholders rather than simply end the enterprise. 7

• September 2026: Federal authorities announced Sarris’s charges and Endoso’s guilty plea. 1

Bankruptcy response and practical consequences

• The bankruptcy is separate from the criminal prosecution, though the alleged historic misconduct is central to both. The Chapter 11 process addresses the company’s assets, liabilities, investor-related claims, and potential recoveries; the criminal case determines individual criminal liability. 37

• Bankruptcy-plan approval does not establish that investors will receive full repayment. Recoveries depend on the estate’s assets, the treatment of claims under the plan, litigation proceeds, and any later restitution or forfeiture outcomes. The available evidence supports that recoveries were a stated objective, but not a fixed recovery percentage. 7

• Linqto’s post-Sarris management and the bankruptcy estate have, in effect, responded by pursuing a court-supervised restructuring after identifying potential compliance failures. Sarris, by contrast, is contesting the criminal allegations; Endoso has admitted guilt. 37